Cost, income, and markets

As a rule it is a problem when cost is too high, but not when income is too high. To the recipient there is no such thing as income being too high. Excessive cost, however, can bring transactions to a dead stop.

Cost is a problem. Income is not. And yet, one person's income is another person's cost. If there is any limit to income, it is because every dollar of income is somebody's cost. In other words, the limit to income is a cost-side limit.

When cost is widely distributed, and income narrowly, the cost-side limit to income is less effective. The larger the market for your product, the less effective is the limit to your income. Markets allow inequality of income. Larger markets allow greater inequality.

Now you know why the wealthy favor globalization.